Taxpayer savings of $5 billion-$6bn across the drug supply chain appear likely after the government reached in-principle agreement with the Pharmacy Guild on major script dispensing reforms.

The next five-year Community Pharmacy Agreement — valued at $18.9bn, as foreshadowed by The Australian last week — will see the existing mark-up system replaced with a volume-based payment that provides more protection from the variability in prices brought by other reforms.

Federal Health Minister Sussan Ley has also persuaded the guild to not stand in the way of pharmacists being given the ­option of competing on price by absorbing $1 of the patient co-payment under the Pharma­ceutical Benefits Scheme. The guild remains opposed to the measure, however, which suggests it may have to be legislated rather than specified in the agreement.

Ms Ley told The Australian last night an optional price cut for ­patients, which sparked outrage when proposed by the government, could saving taxpayers $360 million over five years.

“It presents a win for consumers, pharmacists and taxpayers alike,” she said. “It is also part of the Abbott government’s recognition of the need for greater competition in the pharmacy sector, as acknowledged by a variety of reports and reviews in recent years.”

For more details, go to: http://www.theaustralian.com.au/national-affairs/health/pharmacy-guild-accord-to-dispense-6bn-savings/story-fn59nokw-1227358235928